As you guys are saying how great it will be to have petrol at a $1 a gallon, even when oil prices were at there peak the price of petrol in the US was still half of that in the UK.
I would like you to also think about how if oil drops further then oil workers will be laid off. Wells mothballed, exploration dropped until it is worth it. The result being when the economy does pickup and demand starts to increase the price will shoot back up. Oil needs to be a certain amount for the companies to find it profitable to drill new wells.
I could happily live with $80 a barrel which I think is the true price as that allows it to be high enough for companies to go look for new wells and low enough that it doesn't sting too much.
The thing is governments and oil companies need to work together to take a look at this or we are going to get massive peaks and troughs instead of an evening out of the price.
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